An economic car suitable for local use will be ready within the next two years
Saudi Arabia plans to start its first car manufacturing company with a capital of $500m and expects a prototype within two years, state media reported on Sunday.
Riyadh based King Saud University's president Abdullah al Othman signed on Sunday a memorandum of understanding with a South Korean car manufacturing firm to set up the company.
Othman said, quoted by the state news agency SPA: "(The company) will have a capital of about $500m."
Up to 15 percent of the financing for the new venture is to be provided by the university's investment arm, Wadi al Riyadh Technology, while 30 percent will be covered by the Korean firm. The rest will be offered to investors, the agency said.
Othman said a prototype of an economic car suitable for local use will be ready within the next two years.
Othman said he hoped that Saudi Arabia could export its first car to other Gulf states as well as North African countries.
Saudi Arabia, the largest Arab economy, is heavily dependent on oil and is trying to diversify its revenue.For all the latest transport news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Sign me up - would love to make this a reality....